COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:2128S.01I Bill No.:SB 584 Subject:Alcohol; Fees; Department of Revenue Type:Original Date:March 21, 2025Bill Summary:This proposal modifies the fee for the inspection and gauging of malt
liquors.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2026FY 2027FY 2028General Revenue($3,430,362)($4,116,434)($4,116,434)Total Estimated Net
Effect on General
Revenue($3,430,362)($4,116,434)($4,116,434)
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Alcohol and Tobacco
Control($150,000)$0$0
Total Estimated Net
Effect on Other State
Funds ($150,000)$0$0
Numbers within parentheses: () indicate costs or losses. L.R. No. 2128S.01I
Bill No. SB 584
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on All Federal
Funds $0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on FTE 000
☒ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any
of the three fiscal years after implementation of the act or at full implementation of the act.
☐ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of
the three fiscal years after implementation of the act or at full implementation of the act.
ESTIMATED NET EFFECT ON LOCAL FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Local Government$0$0$0 L.R. No. 2128S.01I
Bill No. SB 584
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FISCAL ANALYSIS
ASSUMPTION
§311.520 – Inspection and gauging fees on barrels of malt liquor
Officials from the Department of Public Safety (DPS) – Alcohol and Tobacco Control (ATC)
state §311.520 is revised to establish a separate inspection and gauging fee for American
brewery malt liquor and foreign import malt liquor. The charge for foreign import malt liquor
will be $1.86 per barrel, which is the current charge for all malt liquor manufactured in, imported
into, and distributed in Missouri. The new charge for American brewery malt liquor will be
$0.62 per barrel, which is 1/3 of what is currently charged. $6,859,765 was collected by the ATC
in FY2024 on all malt liquor manufactured in, imported into, and distributed in Missouri. This
change would reduce the collections by $4,116,434, which will be lost general revenue
year if this bill is implemented.
The ATC does not currently collect information to identify what inspection and gauging fees
collected are from American brewery or foreign imported malt liquor. To calculate the potential
impact, the ATC took all collections from Missouri manufacturers (American brewery) and
reduced the collections by 1/3, which accounts for $2,514,010 of the lost revenue. To identify the
portion of collections relative to foreign import malt liquor, the ATC looked at the registered
brands for all Missouri licensed importers (solicitors), calculated the percentage of American
brands versus total registered brands per licensee, used that percentage to calculate the estimated
inspection and gauging fees collected on American brewery imported malt liquor, and reduced
those collections by 1/3. For example, if the importer has 120 American brewery registered
brands out of 150 total registered brands, and they paid $5,000 in fees in FY2024, the new fee
structure would reduce their charges to $1,333.333, creating a loss of $3,666.67 in general
revenue (120/150 = .80 American brands x $5,000 = $4,000 FY2024 American brewery fees
paid x 1/3 = $1,333.33 American brewery fees paid with new rate). Using this calculation for all
Missouri licensed importers, the estimated decrease in general revenue is $1,602,424. This
method of calculation for importers may not be reflective of actual distribution, and the actual
could be more or less of fees paid by American brewery versus foreign imported malt liquor;
however, the ATC has no other way to estimate the impact since the division does not currently
collect information to identify which category, American or foreign, the fees collected applies to.
In order to implement the change proposed by the legislation, the ATC will have to add
functionality to the on-line reporting system to be able to differentiate between American
brewery and foreign import malt liquor, as well as establish a different fee rate for each. The
ATC is currently in the process of working with a vendor to develop an on-line licensing system,
which will also shift the current ATC On-line system for reporting to this new system. ATC
would have to add these changes to the new system and estimate it could cost as much as
$150,000. L.R. No. 2128S.01I
Bill No. SB 584
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Oversight has no information to the contrary. Therefore, Oversight will present the fiscal
impact of this proposal as provided by the DPS-ATC.
Officials from the Office of Administration - Budget and Planning and the Department of
Revenue each defer to the DPS-ATC for the potential fiscal impact of this proposal.
Officials from the City of Kansas City and the City of O’Fallon each assume the proposal will
have no fiscal impact on their respective organizations. Oversight does not have any information
to the contrary. Therefore, Oversight will reflect a zero impact in the fiscal note.
Rule Promulgation
Officials from the Joint Committee on Administrative Rules assume this proposal is not
anticipated to cause a fiscal impact beyond its current appropriation.
Officials from the Office of the Secretary of State (SOS) note many bills considered by the
General Assembly include provisions allowing or requiring agencies to submit rules and
regulations to implement the act. The SOS is provided with core funding to handle a certain
amount of normal activity resulting from each year's legislative session. The fiscal impact for
this fiscal note to the SOS for Administrative Rules is less than $5,000. The SOS recognizes that
this is a small amount and does not expect that additional funding would be required to meet
these costs. However, the SOS also recognizes that many such bills may be passed by the
General Assembly in a given year and that collectively the costs may be in excess of what the
office can sustain with its core budget. Therefore, the SOS reserves the right to request funding
for the cost of supporting administrative rules requirements should the need arise based on a
review of the finally approved bills signed by the governor.
Oversight only reflects the responses received from state agencies and political subdivisions;
however, other cities and various county officials were requested to respond to this proposed
legislation but did not. A listing of political subdivisions included in the Missouri Legislative
Information System (MOLIS) database is available upon request.
FISCAL IMPACT – State GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028GENERAL REVENUE FUNDLoss – DPS-ATC (§311.520) –
reduction in fees collected($3,430,362)($4,116,434)($4,116,434)
ESTIMATED NET EFFECT ON
THE GENERAL REVENUE FUND($3,430,362)($4,116,434)($4,116,434) L.R. No. 2128S.01I
Bill No. SB 584
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FISCAL IMPACT – State GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028ALCOHOL AND TOBACCO
CONTROL FUND (0544)
Cost – DPS-ATC (§311.520) – on-line
system development ($150,000)$0$0
ESTIMATED NET EFFECT ON
THE ALCOHOL AND TOBACCO
CONTROL FUND($150,000)$0$0
FISCAL IMPACT – Local GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028$0$0$0
FISCAL IMPACT – Small Business
This proposal could have a positive impact on small liquor businesses depending on how much
foreign or American brewery malt liquor they import as the fees they would be required to pay
would be reduced. (§311.520)
FISCAL DESCRIPTION
Under current law, the Director of Revenue shall collect $1.86 per barrel as a fee for inspecting
and gauging malt liquors. This act modifies this provision such that, for all tax years beginning
on or after January 1, 2026, the Director shall collet $0.62 per barrel for inspection and gauging
malt liquors manufactured in an American brewery and $1.86 per barrel for all foreign import
malt liquor. Every licensed manufacturer, outstate solicitor, and wholesale dealer shall maintain
records for inspection, as specified in the act.
This legislation is not federally mandated, would not duplicate any other program and would not
require additional capital improvements or rental space.
SOURCES OF INFORMATION
Office of Administration - Budget and Planning
Department of Revenue
Department of Public Safety - Division of Alcohol and Tobacco Control L.R. No. 2128S.01I
Bill No. SB 584
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Office of the Secretary of State
City of Kansas City
City of O’Fallon
Joint Committee on Administrative Rules
Julie MorffJessica HarrisDirectorAssistant DirectorMarch 21, 2025March 21, 2025